Economics research papers

The UK, for example relies heavily on migrant workers in crucial sectors like agriculture, hospitality and healthcare and this offers the entrepreneurs of such venture an edge in the competition since these are very competitive markets and cost cutting is of the essence to stay afloat. A case in point is the National Health Services (UK) whereby majority of the skilled labor is from migrants and the trends just keep going up.

Just like the market forces of demand and supply affect prices, so does the wage rate get affected by the supply of labor. There exists huge wage disparities across countries depending on their economies and there will always be a migration of people from countries whose wage rate they perceive to be less to those they believe have better pay. The effect of such migration on the labor wages for the natives is that it will shift downwards to respond to the market forces (John 370). There also tends to be a wage shift relative to the skill which the migrants are coming with and the skills of the native population. The labor wage in such situations is that it may remain at equilibrium since there is no competition between the migrants and the natives.

The majority of both the migrants and the natives are mostly composed of the non skilled workers and this scenario pushes the wage rate for the skilled workers and makes it more attractive. In such cases, the wages even for the skilled migrants tends to be high compared to those of the unskilled natives, and leads to them getting more educational qualifications to fill in such disparities (Dustmann 340-2). It should however be noted that since there exists minimum wages which are stipulated by the government, underhand dealers create black market supply of laborers since they are able to get them even at prices lower than the minimum wage. The effect of migrants on wages for the skilled work is not usually much, and if anything it has been on the increase across many nations of the world. There have not been a lot of effects on the supply of such jobs.